Evaluating Brands’

Present Value vs. Future Value

 Evaluating Brands: Differing Metrics

 Common measures: awareness, trust, and price premium

 Brand equity models:

 Aaker, Keller, and Kapferer (building vs. valuing)

 Interbrand, Brandz, and Brand Asset Valuator (BAV)

 Understanding/building vs. valuing

 present value vs. future value

 Brand Asset Valuator (BAV): Metrics
 Knowledge: awareness and experience

 Esteem (i.e., credibility): perceived quality and loyalty

 Differentiation—point of difference (PoD)—uniqueness and premium

 Relevance—point of parity (PoP)—consideration and trial

• Which are the leading (vs. current) indicators of brand value?

• Which indicate (a) stature and (b) strength?

1 vs. 2 and 3 vs. 4:
Which is the stronger position?
Which has more future (vs. current) value ?
 BAV Update: Energized Differentiation

Differentiation  Energized Differentiation

Energy:
momentum (motion + direction + mass)
happening, dynamic, innovative, and exciting

Thank You
 Brand Asset Valuator (BAV)
Four Pillars of Brand Health Development & Momentum
 BAV: Category-agnostic

BAV’s Differentiation relates to brand superiority.

BAV’s Relevance relates to brand consideration.

BAV’s Esteem relates to brand credibility.

BAV’s Knowledge relates to brand resonance.
a brand landscape in which marketers can see where their brands stand relative to other prominent brands in many different markets.

not related directly to product attributes and benefits, or more specific marketing concerns.
 BAV: 4Ps + Energy

Differentiation is the ability to stand apart from its competitors, or the uniqueness of the brand/company. What
does the brand have (that is important to customers)and its competitors do not?
Relevance captures the personal appropriateness and or importance of the brand to the individual customer.
Esteem refers to the perceived quality and even popularity vis-à-vis its competitors.
Finally, knowledge is what does the customer really know about the brand and understand about its identity.

Customers are likely to place a greater value on brands and to build stronger relationships with those they
expect will be available in the future. Will the brand be able to meet the customer’s needs in the future? Is the
brand able to adapt and respond in a timely way to changing customer tastes and needs?
Techtel Corporation surveyed respondents on their perceptions of the “vitality and energy” of Internet firms, and
Aaker and Jacobson (2001a) report that these perceptions are strongly associated with attitude toward the brand.
 BAV and Stock Returns

Mizik and Jacobson 1998 – 2004

BAV + Stock Market Data 890 brands

R (8.2%) and Differentiation (6%)

Esteem & Knowledge Impact Accounting Measures in Subseqent Period

Brand’s Energy explained +16%

Differentiation -> Energized Differentiation

Young Rubicom BAV (Proprietary Model)

 Energized Differentiation > Relevance
When Energized Differentiation is greater than Relevance, the brand is
standing out and receiving attention in the marketplace.
It now has the potential to channel this point of difference and energy
into building meaningfulness for consumers by driving Relevance.

#Leadership brands are strong on both pillars, ED and R, resulting in consumer

passion as well as market penetration.

#Relationships between the pillars that tell a story about brand health and
opportunities.
 Energized Differentiation < Relevance
But if a brand is more Relevant than Differentiated, this suggests
commoditization.

While the brand is appropriate and meaningful within the lives of

consumers, it is perceived as interchangeable with other players in the
category.

Therefore, consumers will not go out of their way for this brand, remain
loyal to it, or pay a premium for it, since it lacks that special something,
we quantify as Energized Differentiation. Convenience, habit and price
become drivers of brand choice in this scenario.
 Esteem > Knowledge

When a brand’s Esteem is greater than its Knowledge, this tells us that
consumers like what they know about the brand so far, and typically
want to find out more, suggesting growth potential.

#Brands often strive to build awareness, but if the brand’s pillars are not
in the proper alignment, then consumer knowledge of a brand becomes
an obstacle that may need to be surmounted before the brand can
continue to build healthy momentum.
 Esteem < Knowledge

But if brand Knowledge is greater than Esteem, then consumers feel that
they know more than enough about the brand, and they are not
interested in getting to know it any better. In this case, Knowledge is an
impediment that the brand must try to overcome if it wishes to attract
more consumers.

First signs: strength dipping below stature,

often short on ED > strength on decline
Power Grid: Brand Development Cycle
Power Grid: Brand Development Cycle
Dimensions of Brand Equity (David Aaker)
 Brand Resonance Pyramid (Keller)
.